News : Economy & Forex

Stocks buoyed by tech rebound; Dudley remarks lift Treasury yields

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06/19/2017 | 10:13pm CEST

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NEW YORK (Reuters) - World stock markets climbed on Monday as technology and retail stocks rebounded from recent weakness and U.S. Treasury yields rose in the wake of hawkish comments from a Federal Reserve official.

The tech sector <.SPLRCT>, up 1.7 percent, pushed equity indexes on Wall Street higher, with the Dow and S&P 500 closing at records. The group had fallen 3.4 percent over the past two weeks but are up nearly 19 percent on the year.

"From a technical standpoint you know there are throngs of investors probably sitting on the sidelines watching that tech rally, wanting to be part of it," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

"Any incremental downturn looked more like an opportunity than a threat."

The U.S. dollar and Treasury yields moved higher after comments from New York Federal Reserve President William Dudley that reinforced expectations the U.S. central bank will continue on its path of tightening monetary policy.

The dollar index <.DXY>, tracking the greenback against a basket of key currencies, rose 0.4 percent, with the euro <EUR=> down 0.46 percent to $1.1146.

Benchmark 10-year notes <US10YT=RR> were last down 10/32 in price to yield 2.1914 percent, from 2.157 percent late on Friday.

The Fed raised rates last week and said it would begin cutting its holdings of bonds and other securities this year.

The stronger dollar weighed on gold prices, but losses were curbed by uncertainty as talks commenced on the terms of Britain's departure from the European Union.

The EU said after a first day of talks on Britain's exit from the 28-member bloc that the clock was ticking on negotiations, but British Brexit minister David Davis said he was optimistic they would yield a swift and good outcome.

Oil prices gave up early gains and turned negative as rising production in the United States, Libya and Nigeria have foiled an OPEC-led effort to support the market by cutting output.